The TRUTH about How LTT SPENDS Money
0 up · 0 down · 0 ratings
Promos
Check out our Channel Partners: Secretlab - Grab a TITAN Evo ergonomic gaming chair: lmg.gg PIA - Get the VPN of our choice: piavpn.com dbrand - Buy a "Circuit" series skin for your device: dbrand.com ► GET OUR MERCH: lttstore.com ► GET EXCLUSIVE CONTENT ON FLOATPLANE: lmg.gg ► SPONSORS, AFFILIATES, AND PARTNERS: lmg.gg Purchases made through some store links may provide some compensation to Linus Media Group. Affiliate links powered in part by affilimate.com Linus Sebastian is an investor in Framework Computer, Inc and HexOS by Eshtek. CHAPTERSs --------------------------------------------------- 0:00 Intro 1:08 The Percentage Breakdown 1:38 We buy a lot of our own merch 2:47 Where is the EU Warehouse? 3:40 Overhead 5:22 Do you OWN your buildings? 6:00 Capital Expenditure! 6:40 People are Expensive 11:00 How much $$$ Does Everyone Make? 13:30 The Average Salary at LMG 14:15 How much does Linus Make? 14:50 How Much does our CEO Make? 15:25 Where does the Profit go? 18:40 Capitalism sucks, but we HAVE to make it work 19:40 The Future of LTT? 21:30 Outro
Channels and socials
Thanks to Meter for sponsoring this video! Go to meter.com to book a demo now! It's time we talk about how Linus actually spends his Billions of Billions of dollars.... Is it on Solid Gold controllers? yes... Is it on multiple buildings? yes... How much Money does Linus make? He even answers that... Some awesome Channels From Current and Former LMGers: @UC-WpvHaSBQEAztK6n_CupOg twitch.tv twitch.tv twitch.tv @UCWqW23Ko6dbscptZYyQE-8A @UCFrwocdmWnj5UBSAAsnuQFw / @UCwQyW25Nhfm8hgyEW9lRf0w @emily-young (not sure why this one won't hyperlink) @UCd0ZD4iCXRXf18p3cA7EQfg Discuss on the forum: linustechtips.com
The video opens by framing the Big Question behind Linus Media Group’s finances, stating that the majority of revenue comes from the audience via product sales and content, with additional support from sponsorships and affiliate links. The host explains that the talk is about where the money goes, promising a transparent breakdown of expenses and how profits are allocated. He acknowledges that the figures come from an accounting snapshot with some rounding, and presents a high level view of costs across recent years to set the stage for deeper discussion. The opening segment also teases the sponsor and introduces the notion that this is a big picture look rather than a line-by-line audit, preparing viewers for the core categories to be examined. Throughout, the emphasis remains on audience alignment, product development, and content creation as guiding principles for spending decisions.
Topics · corporate transparency · finance · technology company · e commerce · employee compensation · supply chain · corporate strategy · merchandising
Questions answered
- What are the two largest expense categories for LMG in 2024 and 2025, and what share do they represent of total costs?
- The two largest expense categories are inventory purchases and people, together representing about 50% of total costs.
- Why is distribution not European yet, and what are the ongoing efforts to reduce shipping costs?
- LMG currently does not have a European distribution center because existing distribution channels already account for about 10% of total expenses, and maintaining storage and staff for shipping is costly. They are exploring ways to reduce shipping costs and improve delivery processes for global customers, including potential future regionalization.
- How does LMG approach employee compensation and what ranges are discussed for salaries?
- LMG aims to maintain median salaries well above regional norms, with 2024 median around CAD 73,500 and 2025 CAD 80,000, reflecting investments to hire and retain talent despite flat revenues. They discuss leadership versus individual contributor pay, noting a CEO-to-median pay ratio and ongoing plans to adjust compensation as needed.
- What portion of payroll is allocated to different departments, and which department is the largest?
- Payroll is distributed across departments with internal shared services, operations, accounting, IT, infrastructure, logistics, and production among the larger groups. Operations is the largest single department, comprising just over 11% of payroll in 2025, driven by executives, events, and HR-like activities.
- What does the “net profit” slice fund, and how is it framed in the context of shareholder value?
- The net profit slice funds new investments, reserves for operating cash and a rainy day fund, potential acquisitions or projects, and dividends to shareholders. The host emphasizes that dividends would be taxed and that the company aims to balance reinvestment with shareholder rewards, while noting the broader goal of sustainable growth.